I’m embarrassed that Coinbase doesn’t buy Bitcoin
In fact, at this point, Coinbase is embarrassing themselves by not buying Bitcoin and making foolish buybacks.
Coinbase just had a bad quarter. The stock plunged more than 10% after reporting disappointing third-quarter results. To instill confidence, Coinbase announced a $1 billion share buyback. But that too failed, with the stock price barely moving.
This whole debacle shows that Coinbase is foolishly ignoring the obvious strategy of buying Bitcoin.
Imagine if, instead of buying back shares, Coinbase invested $1 billion from its corporate reserves into Bitcoin. That would have sent a real message. This will show that they are committed to the game and truly believe in the future of Bitcoin and cryptocurrencies.
Let’s be clear – Coinbase must be all in on Bitcoin’s rise. This is the industry they pioneered! But it’s 2024, and Coinbase isn’t going to follow the proven Bitcoin reserve model that MicroStrategy is literally showing off.
Look, I’m not a financial engineering expert who can tell public companies what to do, but this is all too obvious for cryptocurrency companies at this point.
MicroStrategy began purchasing Bitcoin in 2020. And look what happened. Their market cap now exceeds Coinbase! The software company, which accounts for a tenth of Coinbase’s revenue, has surpassed the OG Bitcoin and cryptocurrency exchange. It’s all thanks to the stacking toes.
What an embarrassment for Coinbase! It has been around since 2012, when the price of Bitcoin was $5. Imagine if they were all in on BTC at that time. But it’s not too late.
No more wasting money on share buybacks or poor projects. The solution is to look Coinbase in the face. Keep building your sats!
It’s painfully obvious at this point. Any self-respecting Bitcoin and cryptocurrency company should have Bitcoin on its balance sheet. This aligns our interests with shareholders and strengthens our credibility.
So wake up, Brian! There are no more excuses. Coinbase literally owes its existence to Bitcoin. It’s finally time to go all in.
This article take. The opinions expressed are solely those of the author and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.